Best Buy (BBY) Beats Earnings; Plans Big Cost Cuts

Best Buy (BBY) isn’t in layoff mode, yet, but the electronics retailer says it’s offered voluntary separation agreements to every one of its corporate employees. We’ll see how many people are willing to give up their jobs in this rough environment, and since the company says it wants to slash costs significantly by 2010, it seems layoffs can’t be too far around the corner.

The last time Best Buy spoke it said it was witnessing “seismic” changes in consumer behaviour, and once again it warns of “potentially long-lasting change in consumer behaviour as people adjust to the new realities of the marketplace.”

The good news is that in this quarter, the company actually beat estimates handily $.35 vs. $.24, while revenue grew 16%. However comp. store growth fell 5% and for 2009, comps are expected to be down from 1%-5%.

The market likes the news, by and large — it’s not like it’s much of a surprise that the future is going to be tough — and the stock is up about 7%.

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